KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Gold prices could face a slight, near-term decline if the Federal Reserve decides on a modest 25-basis-point rate cut this week, according to Goldman Sachs Group Inc. However, the investment bank foresees a subsequent rally, driving the metal to a record high as increased investments flow into bullion-backed exchange-traded funds (ETFs) . “ Fed rate cuts are poised to bring Western capital back into gold ETFs, a component largely absent in the sharp gold rally observed over the past two years,” said analysts Lina Thomas and Daan Struyven . They reiterated Goldman’s forecast for gold to surge to US$2,700 (RM11,542) an ounce by early next year. Gold has been a top-performing commodity this year, climbing by about 25% and setting new records amid increased central bank purchases and expectations of the Fed's shift towards monetary easing. Investors remain divided on whether the US central bank will initiate its easing cycle this week with a half-point reduction or a more caut...